Shifting strategy to lure local customers

Rudijanto, Contributor, Jakarta

With the departure of a significant number of Japanese expatriates, the owners of Japanese restaurants, which have mushroomed throughout Indonesia since the early '70s, have mostly shifted their strategy, location and even name and cooking concept to lure local customers.

Yoshiko restaurant, for example, decided to move from the central business district (CBD) to the residential area in Kebayoran Baru district. This change in location marks the restaurant's shift in strategy and concept.

"We moved here five years ago. Previously, we were known as a very exclusive restaurant with high-end customers. Since the market is shrinking, we are now targeting more the middle-up market, mainly young executives" said the restaurant's owner.

Not only that, Yoshiko restaurant even changed its name to Strattoria Yoshiko. The inclusion of the Italian name means that the restaurant's previous concept of pure and traditional Japanese restaurant has changed into Japanese and Italian restaurant.

The Yoshiko restaurant pampers the Japanese with truly Japanese cuisine that reminds them of the food they had savored at home.

The rapid spread of Japanese cuisine in Indonesia took place in the early 1970s when Japanese investment started to flood Indonesia.

Accompanying this huge investment, Japanese engineers and supporting personnel came to stay in Jakarta. These tough and hardworking people certainly need food that is suitable to their taste.

But the good era when large numbers of Japanese investors and executives stayed in the country ended when the economic situation in Indonesia deteriorated following the economic crisis. The shrinking business has forced many Japanese to leave the country.

Currently, Jakarta has dozens of Japanese restaurants in major hotels such as Crown Plaza and Le Meridien, and high-rise office buildings such as Plaza Bapindo, Summit Mas, and Plaza BBD. This choice of location around the CBD is not too surprising since many Japanese expatriates work and stay in and around the CBD.

The shift in target market from Japanese to locals constitutes a natural consequence of the dwindling Japanese customers. Almost all Japanese restaurants in Jakarta are doing so as their strategy to survive and tap new local customers.

"Previously, we are aiming at Japanese customers but due to various economic and security reasons that have forced the departure of the Japanese, we have changed our focus to develop local customers," Mega Datulong of Manjiro Restaurant in Jakarta's Crown Hotel said.

Other restaurants may still have bigger numbers of Japanese customers, especially those Japanese visitors, but such restaurants are starting to think of tapping the potential local market.

"We want to develop more local customers now, especially the middle-upper segment," noted Friska Eliana of Kyoka Restaurant that is located at Plaza Bappindo I, another of Central Jakarta's high-rise office buildings.

This shift in customer target has consequences in the pricing policy as well as the menu of the restaurants in their effort to adjust to local tastes.

"We offer special menu with lots of fried stuff such as fried rice. We do this as we notice that many local customers prefer fried food. With this special menu, we expect the locals to like our restaurant," Friska added.

The adjustment to local taste is not only limited to offering fried menu but even to the adjustment in ingredients as well.

Mega of Manjiro restaurant also admitted that her restaurant has made several adjustments to accommodate local tastes. But she emphasized that the restaurant still imported most of its ingredients.

"There are adjustments, for instance in Miso Paste of which we have reduced certain ingredient that gives it particular taste. We reduce it because many local customers do not like its flavor," said Mega.

Another Japanese restaurant in the CBD area, Basara, even cooks certain Japanese menu in a way that suits its customers' requests.

"We still offer a standard Japanese menu but we are open for adjustments requested by our customers. After knowing the standard Japanese menu, some locals prefer to add more sweet taste or reduce certain taste. Thus, we accommodate their requests," said Arief Herwanto of Basara restaurant.

Basara restaurant itself is the new name of Chikuyo Tei restaurant. Located in Sudirman Road's Summit Mas Building, the restaurant has changed its name in March last year as a sign in the change of business concept and strategy. Basara is the brand of a new Japanese franchiser.

While other Japanese restaurants feel the need to adjust their menu to suit local customers, Rio of Stattoria Yoshiko believes the opposite. Instead of shifting more to aim at local customers, he does not feel the need to adjust the taste.

"We stick to the Japanese menu because we want to be different with other Japanese restaurants here. Thus, there is no adjustment in ingredients. All ingredients are authentically Japanese ones. Japanese customers often told us that the taste of food here is the same as what he ate in Japan," Rio said.

Since the prices of Japanese food are between Rp 65,000 up to Rp 1 million per set-menu, those dining at Japanese restaurants are among the well-to-do members of society, at least for local customers.

The market is small. This has made the competition among Japanese restaurants in attracting local customers very tough. But all players seem not to be deterred by the competition.

"We are not afraid of the competition because we have our specialty, for instance Unagi with imported eels from Japan," says Friska.

Grilled Unagi is a delicacy in Japan, popular not only for its flavor but also for its stamina-giving properties. Unagi combines a rich flavor with an appetizing texture, crisp on the outside but tender on the inside.

With each Japanese restaurant having its own specialty, customers have clearer option to select the restaurant to pamper their love for Japanese food or, simply, for adjusted Japanese food that suits their local taste.